Elon Musk’s X Reportedly Faces Criminal Investigation Over Algorithm Tampering Allegations

French prosecutors on Friday reportedly opened a formal criminal investigation into Elon Musk’s social media platform X, formerly known as Twitter, over allegations that the company manipulated its algorithms to facilitate foreign interference and illegally extracted user data.

On Stocktwits, retail sentiment around X (XCORP) slipped to ‘bearish’ territory from ‘neutral’ a day ago. 

According to a report by Politico, Magistrate Laure Beccuau said the probe was initiated based on earlier complaints filed by a French lawmaker and a senior civil servant. 

The investigation stems from a preliminary inquiry that began in January, which focused on whether X allowed its platform to be used to spread disinformation and hateful content in a manner that could distort political discourse in France. 

A complaint associated with the initial probe alleged that X enabled the circulation of “an enormous amount of hateful, racist, anti-LGBT+, and homophobic political content,” which could compromise democratic debate in the country.

The latest criminal investigation will examine potential violations of French laws involving “tampering with the operation of an automated data processing system as part of an organized gang,” as well as the “fraudulent extraction of data” from such a system, according to a statement cited by Reuters.

Authorities have not disclosed specific evidence or named any individuals under investigation. X, which was acquired by Musk in 2022, has not yet issued a formal response.

The company has faced mounting scrutiny in Europe over content moderation practices, data privacy, and compliance with new digital regulations under the European Union’s Digital Services Act.

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